Shares of a leading diversified conglomerate with business interests in metals, energy, mining, commercial agriculture, and healthcare surged 3.6 percent on BSE to Rs. 1,016.95 on Tuesday, after the company’s Board approved the stock split in a 1:2 ratio.
With a market cap of Rs. 15,530 crores, at 11:00 a.m., the shares of Nava Limited were trading in the green at Rs. 993, up by nearly 1.2 percent, as against its previous closing price of Rs. 981.45.
What’s the News:
According to the latest regulatory filings with the stock exchanges, the Board of Nava Limited has considered and approved the stock split proposal aimed to enhance the liquidity of the company’s equity shares.
The Board has approved the sub-division/split of equity shares of the company, whereby the existing 1 equity share of the face value of Rs. 2 each fully paid up will be split into 2 equity shares of the face value of Re. 1 each fully paid up.
Financials:
Nava reported a marginal decline in revenue from operations, experiencing a year-on-year decrease of nearly 2.4 percent, falling from Rs. 922 crores in Q2 FY24 to Rs. 900 crores in Q2 FY25.
In contrast, the company’s net profit increased from Rs. 193 crores to Rs. 332 crores over the same period, representing a significant growth of around 72 percent YoY. The repayment of term loans at both standalone and MEL has helped in achieving this growth.
EBITDA for Q2 FY25 also increased by about 14.3 percent YoY to Rs. 456.2 crores, up from Rs. 399 crores in Q2 FY24, with the EBITDA margin rising by 690 bps, from 41.5 percent to 48.4 percent.
Additional Information:
Nava plans to leverage the excellent fertile soil, abundant water resources, and consistent rainfall available on its 25,000-acre farm block in Zambia to establish a strong presence in the commercial agriculture sector while ensuring stable revenue streams. The company plans to allocate $170 million over the next three years to support this initiative.
Nava Avocado Limited has made significant progress in its Avocado Plantation with initial harvest anticipated in December 2024 and construction of a state-of-the-art packing house is also underway. This $45 million Green Project is set to establish one of the largest integrated avocado farms globally.
With the government delivering on its infrastructure commitments, including road connectivity and power supply, Nava plans to resume the establishment of the Integrated Sugar complex.
The facility will produce sugar, ENA, and ethanol, supported by a large captive plantation in Phase I. The project involves an initial investment of $125 million.
By implementing these initiatives within the planned three-year timeline, the Nava Group is poised to establish a significant presence in the green business sector.
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Stock Performance:
The stock has delivered multibagger returns of nearly 119.6 percent in one year, while around 32 percent of positive returns in the last six months. So far in 2024, the shares of NAVA have given multibagger returns of about 122.3 percent.
About the Company:
NAVA Limited is primarily engaged in the business of manufacturing and selling of ferro alloys, generation and trading of power, coal mining, and operation & maintenance services of power generating assets; and has its principal operations located in India, Singapore, and Zambia.
In India, the company operates from its principal place of business located in Paloncha, Hyderabad, Kharagprasad and Samalkot in the states of Telangana, Odisha and Andhra Pradesh, respectively.
Incorporated in 1972, Nava Limited is one of India’s leading ferroalloy producers and also operates Zambia’s largest mine-to-mouth power plant. Expanding its global presence, the company is investing in commercial agriculture in Zambia and healthcare in Southeast Asia.
Written by Shivani Singh
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